While I'm not so sure the yellow metal will finally succeed in leaving the $1,000 mark in the dust during this most recent rally, its quiet strength could easily give way to explosive power should the dollar decide to go "kamikazee." The buck is now flirting with key support levels that if they give, I believe, will be particularly ominous for Treasuries. We just may have the setup for a run on both if this comes to pass...and PM's I suspect, will make a b-line straight to the moon.
Seems to me, the administration's debt monetization plan seems to be backfiring badly as judged by the action in Treasuries since the March, and the whiplash action of mortgage rates of late (suggesting that the Fed may be losing control of market-based rates--not that they can anyway, of course, short of the effects of their recent chicanery and manipulation).
No need to be an idealogue, or a "goldbug" (which, contrary to my MG moniker, I am not, by the way), to make the intelligent choice, friends. While I hope gold/silver can offer me one last chance to buy at "Blue Light Special" levels, I'm afraid that window may be closing. And fast.
This post is more than 60 days old. Replying to it might be confusing for other members reading the discussion.
By all means, keep the ball rolling and post a new opinion.
JoeGoldbug
- Returns
- Today1.34%
- Monthly Avg5.83%
- (Vs. S&P 500)2.51%
- YTD-3.02%
- Stats
- Member SinceOct '08
- Trades/Month2.9
- Sectors Basic Materials
- Risk
- Volatility (STD)High
- S&P Correlation (R²)18.4%
- Beta0.98
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2 Comments
Top 2%
miller
Jun 01 2009 at 7:55AM (EST)
Seems to me like everything you've touched so far has been gold.
Can we buy JoeGoldBug stock? :))
Top 1%
JoeGoldbug
Jun 01 2009 at 11:08AM (EST)
Thanks for the complement, M--
While the majority of my activity here at MG revolves around the metals, it is done so by design. When I joined, I figured I'd offer the community a singular focus on gold and silver to stand apart from all the other gurus (of which there seem to be many competent ones), who can offer insights on equities in general.
In my personal trading, I have never been a one-pony show; my MG portfolio represents only the metals component (and does not show any of my junior Canadian miners), and I am also a very active FOREX trader.
In fact, my five themes since the beginning of the year (taken from my blog started in Jan) have been:
... Deflation is a temporary, cruel headfake
... Gold and Silver are setting up for a moonshot.
... U.S. Treasuries will be the short of the decade.
... A looming dollar crisis is a foregone conclusion.
... Oil doubles from today's $35 within 24 months.